Focus SME IPO Review

Avoid

This looks like a low margin, high debt & high working capital intensive business. PE on adjusted PAT is 10+. I am not even touching from a long distance. Management compensation is high too. Also, debts aren't from related parties means they are interest bearing.

Apply

Looks like a niche company with good capacity available & further capex planned. Working capital well managed and negligible debts. Operating margin is stable as well. Asking for a Market Capitalization of 1804.39 Crores at upper price band at a PE of 35.15 (FY23 earnings annualized) & 39.10 (FY22 earnings).

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Avoid

Asking PE is extremely high if exceptional items are removed. Has added capacity a lot. Related Party Transactions are low. Management compensation is low I feel. However; I am not very positive on the sector and hence for long term I will wait for post-listing performance.

Apply

Asking valuation reasonable. Management compensation looks good at reasonable reason. Debts not so high. Capacity utilization leaves space for growth. Overall, I find this one a better IPO to watch out.

Avoid

I read RHP & it looks like it's all fugazi. The only Asset upto 31st Mar 2021 is a CAR. Mind it I am taking gross block not net block. Yet, it has generated 3.75 Cr of revenue with a Car & no employee expenses. Something seems fishy? NO. Everything is FISHY here.

Apply

This is looking excellent. Plans to repay debt, expand capacity & has enough room in the current facilities. Have read the RHP thoroughly and I find it worth for both listing gains and long term.

Apply

Good financials with zero debt (all repaid). Management compensation looks good to me. Capacity Utilization is high (90%) & doesn't leave much space for growth. Related Party Transactions are significant & must be monitored post IPO. Overall, considering everything this does look good even though I personally feel asking valuation little high. Apply for Listing Gains/Short Term.

Avoid

I will avoid this at all costs from medium to long-term perspective. Operating Margin has come down to 10.24%. Employee Benefit expenses are huge & are rising too. Capex is only for a Solar System & not capacity expansion. Capacity Utilization is high too though given in Hours, which I didn't understand much.

Avoid

Rhetan TMT SME IPO. Asking for close to 149 Cr Market Cap for super earning (either window dressed or due to cycle) of 2.35 Cr translating into 63PE. Promoted by Ashoka Metcast (wealth destroyer) & Shalin Shah (also promoter of Ashoka Metcast). I won't be surprised even if it trades at 80-90% discount shortly. Not even wasting more time here.